How to Form a Corporation in Illinois
Paperwork must be filed with the Illinois secretary of state in order to form a corporation in Illinois. In addition, a corporation in Illinois may be required to obtain certain licenses and permits to legally operate in the state. All corporations that form in Illinois must get a federal tax ID number from the Internal Revenue Service. Corporations that form in Illinois are viewed as having a separate legal existence from the company's shareholders.
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Instructions
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Create a business name. To form a corporation in Illinois you must select a business name that isn't in use or held on reserve by another business entity in the state. According to the Citizen Media Law Project website, the business name of a corporation in Illinois must include words such as "company," "corporation," "incorporated," "limited," or the correct abbreviation.
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Appoint at least one person to serve as director. There are no age or residency requirements for directors of an Illinois corporation.
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Submit articles of incorporation to the Secretary of State's Office. Complete the fill-in the blank articles of incorporation located on the secretary of state's website. Provide information such as the number of directors, name and location of the corporation, as well as the service agent for process. The service agent of process must be a business or adult that agrees to accept legal documents for an Illinois corporation. The service agent for process must maintain a physical address in the state. Submit articles of incorporation online, in person or by mail. As of 2010, $175 is the minimum filing fee to form a corporation in Illinois.
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File the certificate of formation with the Recorder of Deeds Office in the county where the corporation operates. The secretary of state will mail a certificate of formation to the corporation, indicating the articles of incorporation have been accepted. According to the Citizen Media Law Project website, the certificate of formation along with articles of incorporation must be filed with the Recorder of Deeds Office within 15 days of receiving the certificate.
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Apply for a federal tax ID number. A corporation in Illinois may apply for a federal tax ID number by visiting the IRS website. Form SS-4 may be submitted online, by phone, mail or fax. Provide information such as the name and location of the business, as well as the business type. A corporation in Illinois that applies for a federal tax ID number by phone or online will receive a federal tax ID number for immediate business use. Corporations in Illinois that apply by fax may wait up to four business days to receive a federal tax ID number. The IRS may take up to four weeks to process Form SS-4 when received by mail.
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Register for Illinois business taxes. Log on to the Illinois Department of Revenue website. Click the "businesses" link. Click on the "Business Registration" link. Complete the online registration form. Provide information such as the name and location of the Illinois corporation, nature of the business, as well as the federal tax ID number. In lieu of online submission, the registration form may be downloaded and mailed to the Illinois Department of Revenue office.
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Obtain licenses and permits. The permits and licenses needed to form a corporation in Illinois vary depending on the nature of the business. For example, corporations in Illinois that provide professional services such as an accountan, must obtain the appropriate state-issued occupational license. A corporation in Illinois may be required to obtain a zoning permit, depending on the location of the business. Contact the city or county clerk's office where the Illinois corporation operates to obtain a general business license, and other local permits that may be needed to operate the company.
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